IAG to acquire 90% of RACQ’s existing insurance underwriting business
IAG has announced a long-term strategic alliance with RACQ , acquiring 90% of RACQ’s insurance underwriting business for $855 million, with an option to acquire the remaining 10% after two years. This partnership establishes a 25-year exclusive distribution agreement for providing general insurance products to RACQ members and Queenslanders, reinforcing IAG’s footprint in the region.
Key highlights include:
- Transaction Value: $855 million, comprising net tangible assets ($522 million) and an upfront distribution payment ($333 million).
- Impact: Adds ~$1.3 billion to IAG’s Gross Written Premiums and aligns with IAG’s financial targets.
- Future Synergies: Expected annual savings of over $50 million, leveraging IAG’s reinsurance strategy.
- Completion Timeline: Anticipated in Q3 2025, subject to regulatory approvals.
“IAG will provide Queenslanders with the confidence to feel safe and well protected through our commitment to community resilience and climate action, nation-wide supply chain and global long-term reinsurance relationships. We look forward to welcoming all RACQ people and members into this exciting new partnership.” – IAG CEO of Retail Insurance Australia Julie Batch.
